by Fresh Start Tax | Nov 26, 2012 | IRS Notice or Letter, Tax Help
IRS Tax Notices Help, Settlements – Notice CP-501
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Fresh Start Tax L.L.C. is comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors. We have over 206 years of IRS tax experience and over 60 years of direct IRS work experience in the local, district and regional offices of the IRS.
Being Former IRS Agents we know all the tax policies and positions of the IRS. We can get you tax relief today.
If you cannot pay the liability in full contact us today and we can go over your options to stop the IRS.
IRS has three different programs to deal with unpaid taxes.
IRS can either place your case in hardship, accept payment or considering settling your case with a offer in compromise of a tax debt settlement.
Call us today and we will review your case for no charge and go over different tax options.
The IRS Collection Process.
Once a taxpayer or business owes funds to the IRS it sends out a series of collection notices. These notices are CP-14. Notice CP-501, Notice CP-503, Notice CP 504. Each of these notices go out in a 5 week billing cycle.
You must make sure you call IRS early on in the process to stop enforcement action. If you do not respond to the IRS after the CP 504 you can expect a bank or wage levy coming your way.
The CP-501
Notice is a first bill notice simply letting you know that money is owed to the IRS. The IRS will give you a pay of date to pay the tax. It is best if you have the funds to pay the tax off in full.
The second notice you will receive is the CP 501
The CP-501.
The Bill will look just like this.
Reading your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.
Notice CP501, Page 1
Notice CP501, Page 2
Notice CP501, Page 3
Notice CP501, Page 4
by Fresh Start Tax | Nov 13, 2012 | IRS Tax Audit, Tax Help
IRS & State Sales Tax Audits Help – Former IRS, Attorneys
We are a local tax firm. We can stop the worry today. Use our experience for your benefit.
We have over 206 years of professional tax experience.
If you are having a IRS or State of California Sales Tax audit call us today for a no cost professional tax consult and speak directly to a Tax Attorney, Tax Lawyer, CPA, Enrolled Agent, or Former IRS Agent.
We have been representing taxpayers since 1982 and Fresh Start Tax LLC has a A plus rating with the Better Business Bureau.
We handle all types of audits, We have represented thousands of clients since 1982.
Do not get ripped of by non professionals. Hire real tax professionals.
How the process works:
The Examination (Audit) Process
The IRS examines (audits) tax returns to verify that the tax reported is correct.
Selecting a return for a IRS or Sales Tax Examination does not always suggest that the taxpayer has either made an error or been dishonest.
In fact, in some rare cases some tax examinations result in a refund to the taxpayer or acceptance of the return without change. These are called NC or no changed
The majority of taxpayers files returns and make payments timely and accurately. Taxpayers have a right to expect fair and efficient tax administration from the IRS, including verification that taxes are correctly reported and paid with enforcement actions against those who fail to comply voluntarily.
Taxpayer Rights to all Tax Audits both Federal And State
The IRS and the State of California trains its employees, representatives and auditors to explain and protect taxpayers’ rights throughout their contacts with taxpayers.
These tax rights include:
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A right to professional and courteous treatment by IRS employees.
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A right to privacy and confidentiality about tax matters.
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A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
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A right to representation, by oneself or an authorized representative.
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A right to appeal disagreements, both within the IRS, the State and before the courts.
How IRS and State of California Sales Tax Returns Are Selected for a Tax Examination
They are selected using a variety of methods:
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Computer Scoring — Some returns are selected for examination on the basis of computer scoring. Computer programs give each return numeric “scores”. The Discriminant Function System (DIF) score rates the potential for change, based on past IRS experience with similar returns. The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income. IRS personnel screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review.
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Information Matching — Some returns are examined because payer reports, such as Forms W-2 from employers or Form 1099 interest statements from banks, do not match the income reported on the tax return.
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Related Examinations — Returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for examination.
Call us today for a no cost professional tax consult and hear the truth from a A plus rated tax firm. 1-866-700-1040.
by Fresh Start Tax | Nov 10, 2012 | Back Taxes, IRS Tax Advice, IRS Tax Problem, Tax Help, Tax Relief
Cannot Pay the IRS – Ask IRS for Tax Hardship or Noncollectable – IRS Tax Relief Today
Call us today for a no cost consultation and speak directly to a Former IRS Agent, Attorney or a CPA.
We have over 206 years of professional tax experience and over 60 years of working directly for the IRS. 1-866-700-1040.
If you cannot pay the IRS you may be able to qualify for a Tax Hardship or a Noncollectable Status if you qualify. If your current expenses exceed your income you may have a chance to get your tax case suspended for a period of time.
Most of the cases that have past due balances over 4 months old, the IRS will not be able to collect in full at the current time.
The Internal Revenue Service has different programs in which taxpayers qualify to close their cases off of the IRS Collection enforcement Computer call the CADE 2.
There are at best guess over 25 million cases on the system that the IRS has made arrangements because the taxpayers do not have the ability to pay the tax in full. These back tax cases involve individual, payroll, excise, estate and a variety of other taxes.
From a common sense standpoint, all taxpayers cannot pay their tax obligations on time so the IRS has made other provisions to deal with back taxes.
The IRS will require a documented Financial statement. These financial statements are found on IRS form 433A or a 433F. When sent to the IRS they must include all attachments to prove the validity of the figures found on the form.
Besides this form the taxpayer will have to have all tax returns filed and current.
The three most common way taxpayers can close case once IRS reviews a current financial statement.
IRS will consider these closing methods:
1. Hardship, the inability to pay the tax off at the current time and unable to make monthly installment agreement due to a lack of income. The taxpayer qualifies for a Tax Hardship or Noncollectable Status.
2. Installment agreements,the taxpayer has the ability to make current monthly payments,
3. Offers in Compromise, the taxpayer has the ability to consider a tax settlement with the IRS.
What is a Economic Hardship
When a taxpayers liability can be collected in full but collection would create an economic hardship, an ETA offer based on economic hardship can be considered.
The definition of economic hardship as it applies to ETA offers is derived from Treasury Regulations § 301.6343-1.
A IRS Economic hardship occurs when a taxpayer is unable to pay reasonable basic living expenses.
The IRS determination of a reasonable amount for basic living expenses will be made by the Commissioner and the representatives and will vary according to the unique circumstances of the individual taxpayer.
Because economic hardship is defined as the inability to meet reasonable basic living expenses, it applies only to individuals (including sole proprietorship entities).
Tax Compromises on economic hardship grounds is not available to corporations, partnerships, or other non-individual entities.
The taxpayers financial information and special circumstances must be examined by the IRS to determine if they qualify for an ETA offer based on economic hardship.
The Financial analysis includes reviewing basic living expenses as well as other considerations.
The taxpayer’s income and basic living expenses must be considered to determine if the claim for economic hardship should be accepted. Basic living expenses are those expenses that provide for health, welfare, and production of income of the taxpayer and the taxpayer’s family.
There are national and local standard expense amounts are designed to provide accuracy and consistency in determining taxpayer’s basic living expenses.
These standards are guidelines and if it is determined that a standard amount is inadequate to provide for a specific taxpayer’s basic living expenses, allow a deviation.
In addition to the basic living expenses, other factors to consider that impact upon the taxpayers financial condition include:
a. the taxpayers age and employment status,education,
b. Number, age, and health of the taxpayers dependents,
c. Cost of living in the area the taxpayer resides, and
d. Any extraordinary circumstances such as special education expenses, a medical catastrophe, or natural disaster.
e. past history and income made over the past 3 years.
This list is not all-inclusive. Other factors may be considered in making an economic hardship determination.
Some factors that support an economic hardship determination may include:
1. The taxpayer is incapable of earning a living because of a long term illness, medical condition or disability, and it is reasonably foreseeable that the financial resources will be exhausted providing for care and support during the course of the condition.
2. The taxpayer may have a set monthly income and no other means of support and the income is exhausted each month in providing for the care of dependents.
3. The taxpayer has assets, but is unable to borrow against the equity in those assets, and liquidation to pay the outstanding tax liabilities would render the taxpayer unable to meet basic living expenses.
Some of these factors are representative of situations the Service regularly encounters when working with taxpayers to resolve delinquent accounts.
They are not intended by the IRS to provide an exhaustive list of the types of cases that can be compromised based on economic hardship.
Call us today to find out more and speak directly to a tax professional. 1-866-700-1040
by Fresh Start Tax | Nov 9, 2012 | IRS Representation, IRS Tax Audit, IRS Tax Problem, Tax Help, Tax Relief
IRS TAX RELIEF – IRS TAX HELP
Stop your worry today. Have Former IRS who taught Tax Law at the IRS that know all the settlement and tax polices get you much needed tax relief.
We handle all IRS Collection matters, IRS tax audit, State Tax Problems and Appeals Issues. On staff, Board Certified Tax Attorney and CPA’s as well as Former IRS Agents, Managers and Instructors with over 60 years with the IRS.
We taught Tax Law at the IRS.
We can get you immediate tax relief. We have given IRS tax help to over 15,000 clients since 1982.
If you are having any IRS tax issue or tax problems that immediate and permanent tax help relief call us today and end your worries.
We are a local tax firm. We are A plus rated by the Better Business Bureau.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
Fresh Start Tax L.L.C. is one of the premier tax resolution firms in the New Jersey area.
Our firm deals with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations.
We have staff that specialize in every facet of IRS Tax Representation and State Tax Representation.
We know all the IRS tax strategies because of our extensive IRS working backgrounds.
We were Former IRS Certified Tax Instructors that taught IRS Tax Law in the IRS Regional Training Center. Some of our many specialties include the following:
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases , Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases and Tax Audits
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
- FBAR Experts
- Expatriate Tax Experts
Private Practice Since 1982
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”PLUS
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
Do not be bullied by the IRS. Fight back with former IRS Agents, Managers and Instructors. Free tax consults 1-866-700-1040.
by Fresh Start Tax | Nov 8, 2012 | California Tax, Tax Help, Tax Lawyer, Tax Settlements
IRS Tax Attorney Lawyers – Reduce IRS Tax Debt- Former IRS
We are a professional tax firm specializing in IRS and State Tax Problems. We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s , Enrolled Agents and Former IRS Agents, Managers and Tax Instructors.
We have over 60 years of direct IRS work experience in the local, district and regional offices of the IRS and over 206 years of professional tax experience. We have a National Tax Practice with a local presence.
We have worked thousands of IRS cases to reduce IRS tax debt.
We taught Tax Law at the IRS.
Fresh Start Tax
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
Last year approximately 59,000 taxpayers applied for tax relief to reduce IRS debt through the Offer in Compromise Program and somewhere around 20,000 offers were accepted.
The New Fresh Start Program that was instituted by the IRS will allow thousands of struggling taxpayers to finally resolve and reduce their tax debts.
Being a Former IRS Agent I caution taxpayers to make sure they use a reputable tax firm to file and represent your interest for the filing of the offer.
The forms must be filled out accurately and precisely because the IRS looks for any reason to reject these cases because they are long and complicated for them and each one of their supervisors must thoroughly review their work and work produce before the case goes up the line for a possible acceptance.
Offer take about 5 months to get accepted.
I would also caution taxpayers do not file the offer unless you get pre-qualified before you file. Do not waste your money.
We at Fresh Start Tax review all offer for no cost. 1-866-700-1040.
What is a Offer in Compromise to Reduce your Tax Bill
An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or a through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential.
OICs are subject to acceptance on legal requirements. They also become a matter of public record.
In the past the IRS strictly applied its rules with respect to taxpayers’ budgets and valuation of assets. As a result, most taxpayers who sought a compromise received a rejection. Below are the statistics for offer acceptances during the past several years:
| Offers |
2007
|
2008
|
2009
|
2010
|
2011
|
| Received by IRS |
46,000
|
44,000
|
52,000
|
57,000
|
59,000
|
| Accepted by IRS |
12, 000
|
11,000
|
11,000
|
14,000
|
20,000
|
Make sure you are eligible
Before the IRS can consider your offer in compromise, you must be current with all filing and payment requirements.
You will not be eligible if you are in an open bankruptcy proceeding.
Submitting your offer in compromise.
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Find this on our website.
Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a IRS payment option
Your initial payment will vary based on your offer and the payment option you choose:
Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines. You do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Call us today for a free tax consult 1-866-700-1040.
by Fresh Start Tax | Nov 7, 2012 | IRS Tax Debt, Tax Help, Tax Lawyer, Tax Relief, Tax Settlements
Last year 56,000 offers in compromise/tax debt settlements were filed with the IRS and 27% were accepted. Most of those that were accepted were filed through professional tax firms.
With the advent of the NEW Fresh Start Program, the filing of Tax Debt Settlements will go through the roof. The back log right now is at 7,700.
I am a Former IRS Agent and Teaching Instructor with the IRS.
I have reviewed hundred and hundreds of offers in compromise while working at the IRS. Being in private practice for over 27 years I have seen the results of many failed offers in compromise due to the pure lack of understanding about the program itself.
With the new Fresh Start Program, the IRS is finally trying to help struggling taxpayers. The attitude prior to the new program was “deny the offer.” Because Offers in Compromise or Tax Debt Settlements take so long to work and they get reviewed by supervisors, the typical IRS Agent would reject the offer and any grounds. The taxpayer not knowing better would quit the process. The IRS lost billions of dollars in revenue because it failed to properly facilitate the program.
With the inception of the the new Fresh Start Program hopes are high that the taxpayers burdened by tax debt will be able to finally settle there cases.
As a side note.
Do not submit your offer in compromise unless a tax professional pre-qualifies the offer. You will be wasting your time and lots of money unless you know you got a good chance of acceptance. We will not submit an IRS tax debt Settlement at Fresh Start Tax LLC unless there is an excellent chance of acceptance. 1-866-700-1040.
Much is written about Offers in Compromise, but follow these tax offer tips and you will have a significant chance of the IRS accepting your tax debt settlement
Throughout the course of our representation for hundreds of clients, we find ourselves engaged in conversations with the IRS Agents who run the offer program in Holtsville, New York and other District and Regional Office. We queried many of them.
We would ask, “Why are most offers returned or rejected?”
Here are some points the IRS offer specialist agent made:
A. Most taxpayers simply do not understand the concept of the offer. They submit an offer in compromise or a tax debt settlement simply because the program is available, having no idea of the assets and income requirement. Partial blame is geared towards false advertising to be the cause of these rejections. “Pennies on the dollar” has caused a frenzy of “everybody can settle.” IRS has strict qualification rules.
B. Believe it or not, many individuals only have one spouse sign the offer when both spouses are required to sign. As a result the offer must be reject by the IRS.
C. Many taxpayers do not send in the 20% of the offer required along with the Offer in Compromise. Some offers require the 20% payment down with the OIC. If the IRS technician sees the 20% is not attached, they simply return the Offer in Compromise.
D. A number of taxpayers fill out the form 656 incorrectly. The 656 is a legally binding document. If it is all not filled out correctly, the IRS must return the Offer in Compromise. All required blocks must be appropriately completed.
E. Some do not apply the income and expense formulas correctly. Different offers require different formulas. Some use a 48 multiplier and some use a 60 multiplier. Therefore the offer calculations are incorrect and the offer cannot be processed. This is the most common error.
F. On periodic offers, some individuals only send in one periodic payment and fail to comply after the offer in compromise has been submitted. Periodic offers in compromise require the taxpayers to make continued payments until the offer is work and accepted. The IRS simply rejects the offer at this point.
G. Some individuals have filed for bankruptcy and the IRS cannot work the Offer in Compromise.
H. Some of the taxpayers did add the values of all their assets. The IRS technician stated that many did not include IRA or pension monies because taxpayers thought they were excluded.
I. The 433 OIC is a very complicated form to complete. With that said the Offers were rejected because the Financial statements were inaccurate and did not make sense.
J. Many taxpayers simply did not calculate the correct math for acceptance. Those that submitted the 433B did not explain the carry overs to the 433A properly.
Understanding the process of a IRS Tax Debt Settlement
While your offer is being evaluated:
a. Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
b. A Notice of Federal Tax Lien may be filed;
c. Other collection activities are suspended;
d. The legal assessment and collection period is extended;
e. Make all required payments associated with your offer;
f. You are not required to make payments on an existing installment agreement; and
g. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
All accepted offers are a matter of public record and can be inspected in the Regional Office of the IRS. Appointment can be made to view those accepted cases.
Call us today for a free tax consult. 1-866-700-1040
IRS Tax Debt Settlement -Tax Attorneys, Lawyers – Get your Offer in Compromise Accepted
